Annual Report for MLN 585 Eva Mine period ending 31 December 2013 Westmoreland Project

Abstract

MLN 585 covers the historic Eva uranium mine in the Westmoreland region in the Northern Territory west of the Northern Territory - Queensland border and is one of numerous abandoned mines in the area. The lease was originally granted to a prospector in 1955 and has been owned, explored and worked by several companies including BHP Ltd who first established a uranium resource of 55,000 t ore averaging 0.56% U3O8 to a depth of 42 m on the Lease in 1959. Some 300 tonnes of high-grade ore was mined from underground workings on the Lease in the 1960's. The Lease has been renewed twice and is current until 31st of December 2017. Following purchase of the property by NuPower in 2009 from the Coronation Hill Joint Venture partners (Newcrest Operations Ltd, Plutonic Gold Pty Ltd, Norgold Pty Ltd), NuPower accessed closed file information that contained results of the resource drilling by BHP Ltd. These data were modelled by a resource consultant to provide an exploration target of potential mineralisation. Also during 2009, NuPower drilled 50 holes for 2,837.7 m, comprising 40 RC holes for 2,328 m and 10 core holes for 509.7 m. A total of 1,552 samples were assayed by ALS and comprised 1,397 primary RC and core drill samples and 155 QC samples. All tracks and site works were rehabilitated. The NuPower drilling and mapping indicated that mineralisation is associated with zones of strong shearing, fracturing and jointing, developed over widths of more than 40 m, which is widest at the western end near the old workings. The zone of most intense shearing and containing the highest uranium and gold values is centred on the old workings, over widths of 10 to 15 m, and has been mapped over a 60 m strike length. Mapping also located shearing with adjacent mineralisation a further 70 m along strike to the east of this central zone, over an 8 m width that remains untested by drilling. From the drill sections and structural core measurements, it is evident that toward the base of mineralisation, moderately dipping shears and joints, sub-parallel to Shear 1 prevail whereas, higher in the sections and at surface the steep structures associated with east-west shearing are prevalent. It appears that altered microgranite (in part previously misidentified as arenite) is the preferred host for the high grade mineralisation, although shearing, talc alteration and mineralisation extend into the andesite, albeit at a lower intensity. The drilling to date indicates that these mineralised structures do not persist into the underlying units below Shear 1. Review of the 2009 assays, intersections and resource models in 2010 suggested that gold-only intervals may have been present in sections of drill holes that were not assayed in the basis of low uranium grades determined in the field by PXRF. Seven hundred and five RC and 123 core samples were retrieved from storage on site and were assayed. The data were merged with the existing database and provided to an independent consultant for resource modelling. Specific gravity was determined from core samples retained for metallurgical purposes that were also scanned by HyLogger. Separate total (JORC Inferred and Indicated) resources are 535,800 tonnes at 0.12% U3O8 for 1.43Mlbs of U3O8 and 101,600 tonnes at 3.77g/tAu for 12,300ozAu with a cutoff of 0.02% U3O8. Environmental monitoring of the site has continued since 2009 and an independent consultant carried out a study of a suite of stream sediment samples to conclude that there is no significant environmental contamination of the surrounding area and that silt entrapment ponds constructed by NuPower have been successful. The site has stabilised following rehabilitation by NuPower in 2009 and natural re-vegetation is progressing well. NuPower became Central Australian Phosphate which was recently taken over by Rum Jungle Resources. Rum Jungle Resources needs time to assess the prospectivity of MLN 585 and the desirability of the target commodities as well as the commitment to ongoing environmental monitoring.